TBHC GLOBAL LTD

Executive Summary

TBHC Global Ltd operates as a small-scale construction holding company, exhibiting financial characteristics typical of micro to small entities in this sector, including modest asset size and reliance on director funding. While benefiting from focused ownership and operational flexibility, the company faces challenges related to liquidity and market dependency through its subsidiaries amid evolving construction industry dynamics. Its positioning reflects a niche player profile, with growth potential tied closely to the performance and strategic management of its underlying construction investments.

TBHC GLOBAL LTD - Analysis Report

Company Number: 13816213

Analysis Date: 2025-07-29 19:38 UTC

1. Industry Classification
   TBHC Global Ltd operates primarily in the sector classified under SIC code 64203, which relates to "Activities of construction holding companies." This sector typically involves holding and managing investments in construction-related subsidiary companies rather than direct construction activities. Key characteristics of this sector include asset management of construction entities, strategic oversight, and financial control, with revenue often derived from dividends, management fees, or capital gains rather than operational construction contracts.

2. Relative Performance
   Given TBHC Global Ltd's financials for the year ended 31 December 2023, the company presents a modest balance sheet with fixed assets of £174,001, current assets of £157,474, and net current liabilities of £105,194, resulting in net assets of £68,807. Compared to typical construction holding companies, which often have larger asset bases and more significant equity due to their role managing multiple subsidiaries, TBHC Global is relatively small, consistent with a micro to small company profile. The company’s negative net working capital (current liabilities exceeding current assets) is not uncommon in holding companies that rely on director loans and group funding rather than operational cash flow. Its shareholders’ funds increased from £52,904 in 2022 to £68,807 in 2023, indicating modest growth in net asset value.

3. Sector Trends Impact
   The construction sector in the UK has faced volatility due to fluctuating material costs, labour shortages, and regulatory changes. However, as a holding company, TBHC Global Ltd’s exposure is indirect, depending primarily on the performance of its subsidiaries. Increased focus on sustainability and green building practices, digitalization, and supply chain resilience are industry trends that may affect the subsidiaries under its portfolio, impacting TBHC Global's investment returns and strategic decisions. The holding company model benefits from diversification across construction businesses but is susceptible to the broader cyclical nature of the construction market.

4. Competitive Positioning
   TBHC Global Ltd appears to be a niche player within the construction holding sector, given its relatively small scale and limited asset base. Its financial leverage through director loans (£145,787) indicates dependence on internal funding rather than external debt or equity markets. This internal funding approach aligns with many private limited construction holding companies focusing on close management control. Unlike larger competitors with diversified subsidiary portfolios and broader capital access, TBHC Global’s financials suggest a focus on early-stage or smaller construction investments. Strengths may include agility and concentrated ownership control by its principal shareholders, Emilie and Mads Dal, both holding significant shares and voting rights. However, the company’s negative net current assets and reliance on director loans could pose liquidity risks if subsidiaries underperform or market conditions deteriorate.